“Everything we do has to be convenient”

14 January 1998.

OKay opens its first convenience store in the East Flemish town of Ertvelde. Today - 25 years later - the shop format is able to present some great results and new plans are in the pipeline. We look back and forward with motivated director Christophe Dehandschutter.

Why did Colruyt Group open convenience stores 25 years ago?

Christophe • “We had fond memories of our former Boxer convenience stores. However, over the years they'd merged with the big Colruyt stores. We felt there was space and demand again for stores with a smaller floor area, closer to the consumer. And in those days, there was talk of a legislative proposal to limit the floor area for new shops to 400 m². That was far too small for a Colruyt shop of course, which would make expansion under the Colruyt banner difficult. The law didn't materialise but the idea stuck.”

Was OKay an instant success?

“The first four or five years, the concept still needed some fine-tuning. But all in all it was successful. Of course, we already had a lot of experience in food retail. Belgium already had a lot of supermarkets, but we found our niche. We grew considerably in just a few years: first in Flanders, particularly in small towns. In terms of location, we often filled the gap between Colruyt stores. Our city formula OKay Compact, with stores up to 400 m², followed later.”

Is the focus even more on cities now?

“We still want to develop the OKay concept, but the biggest growth is indeed expected from our OKay Compact city stores. We now have 141 OKay stores, 15 of which are Compact stores. Together with Colruyt and Collect&Go, we're looking at ways to help city customers better. The group has a market share of about 32 %, whereas in a big city such as Brussels it's only 20 %. In other words, there's plenty of growth margin.”

What was and is OKay's biggest strength?

“We offered - and still do - a full assortment of food on a small floor area. You're in and out of the store in no time. And with the growing mobility problem, proximity is also an advantage. Actually, OKay's strengths are simply in our brand promise: fast, inexpensive and convenient."

Let's start with inexpensive. How do you deliver on that promise?

“We don't go as far as Colruyt, which has the lowest prices in Belgium. But we do guarantee the lowest prices in the neighbourhood: we track our competitors within a 5 km radius and 8 driving minutes of any given OKay. OKay has not highlighted that enough in the past, I think. This will be communicated more in the future. We'll also adjust our promo policy and will soon be offering 1 + 1 promotions. That's new for OKay! This gives ‘inexpensive’ a specific content.”

And how about 'fast and convenient'?

“Our stores have a floor area of maximum 650 m². If they get any bigger, we can't guarantee 'fast'. As soon you enter a store, you have a good overview of the aisles, you can see where the fresh mart and the bakery is. Everything to get your shopping done as quickly as possible. Our ambition is to provide the quickest service in the market. Faster than e-commerce, where you still have to order. Anyone who comes to our shop twice a week should be able to get out in ten minutes. Transport, making a list and shopping: 35 minutes.”

And not wait until they ask for help. Or you may be waiting at the check-out with three little products behind two full carts: if so, the extra check-out should be opened immediately. But 'convenient' should also be apparent after shopping. For instance, by offering pre-prepared party menus or ready-made meals. Or by providing inspiration in our folders with feasible recipes that take less than 15 minutes to prepare. I also extend this to our workers, by the way. Complicated processes - such as scanning bread via a flipper - should be eradicated. Everything should be easy for them too.”

Does our self-service store OKay Direct also fit into that 'convenience'

category?

With this ambition you can set yourself apart from other retailers.

“Exactly. The competition has become stronger and comes up with new stores and concepts. This means we have to strengthen our brand as well. Everything we do should be convenient. In fact, it should be extremely convenient! Exceedingly so! Even quicker and easier!”

Excuse me?

“Yes, we have to be very extreme in this. More than just convenient. I want to give OKay some more oomph. That's why I'm pushing the organisation to take more risks.”

In other words, convenience is your key concept. Could you give a concrete example?

“Well, it concerns several minor things, but also a lot of major things. If a customer can't find something straight away, our service has to be proactive.

“Absolutely! We want to be top of mind for people's day-to-day shopping but in this case we also need to be open in the evening and on Sundays. Okay Direct is open 24/7 which is why we'll expand this concept further in Ghent, and test variants in other locations. Around this time, we'll open a self-service container in the car park of OKay Lennik, where customers are able to shop during and outside opening hours. (more on p. 19, editor's note)”

What challenges does OKay face in the coming years?

“Rolling out the 'convenience' aspect further, of course. But also show that our brand is rejuvenating and dynamic. We want to introduce innovations and appeal to young people without losing our loyal customers. In the same way as with OKay Direct, or with self-scanning at the check-out. We'll launch this in one store, later in all Compact stores, and from 2024 all OKay stores. If we manage to overcome all these challenges, OKay will definitely make a difference.”